I. It records subscription in arrears II. Payments of liabilities is effected III. The account does not show if cash payment is revenue or capital expenditure IV. It performs the same function as cash book
The features of receipts and payment account includes:
A. III and IV B. I, II and IV C. II, III and IV D. I, II and III
Correct Answer: C
Explanation
The features are: - include capital and revenue items - accruals and prepayments are not included - it is a real account - only actual receipts and payments are recorded - balance represent cash in hand
